Manhattan wages fall sharply, as Wall Street shrinks

Wages are falling in Manhattan, especially in the private sector, but the problem is not those fast-food workers making the minimum wage. The decline is due almost entirely to the squeeze on the city’s powerhouse industry, finance.

The average weekly private-sector wage in Manhattan fell 4.1% in 2013, according to a report released Thursday by the U.S. Labor Department, the steepest decline among the 10 largest counties in the country ranked by the number of jobs. Overall wages dropped by 3.3%, again the worst performance.

Here are the key sectors, weekly wage and change from the year ago figure:

Sector

Weekly wage

Percent change

Construction

$2,099

5.1%

Manufacturing

$1,546

0.6%

Trade

$1,400

-8.8%

Information

$2,525

1.3%

Finance

$4,740

-8.4%

Professional, business services

$4,446

0.4%

Education, health

$1,261

2.8%

Leisure, hospitality

$923

1.8%

Other services

$1,126

3.4%

Government

$1,126

2.4%

Source: U.S. Department of Labor/Bureau of Labor Statistics

The decline in trade, transportation and utilities doesn't seem to be significant. The category saw a sharp uptick in the previous year and this is just smoothing the statistical noise.

The big story is finance, which accounts for about a third of all wages in Manhattan anyway and everyone knows about the squeeze on the industry and should know that does not mean good things for the city.

There is some good news in the report. Manhattan added more jobs than anywhere but Los Angeles (which boasts 50% more jobs) and Harris county (Houston, which is about the same size by employment).

But whether the issue is Wall Street bashing or incentives to retain financial jobs, the problems of the finance sector must remain in the spotlight.

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